GF Securities Co (FRA:9GF) Beneish M-Score: -2.06 (As of Jun. 26, 2026)


FRA:9GF GF Securities Co Ltd FRA:9GF
68 GF Score
Price €1.85
GF Value €2.02
! 5 Warning Signs
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What is GF Securities Co Beneish M-Score?

GF Securities Co FRA:9GF -0.54% 68 Beneish M-Score is -2.06 as of Jun. 26, 2026. GuruFocus rates FRA:9GF with a GF Score™ of 68/100 and a GF Value™ of €2.02. The stock has 5 warning signs investors should review. Among 702 Capital Markets companies, GF Securities Co ranks worse than 54.13% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for GF Securities Co's Beneish M-Score or its related term are showing as below:

FRA:9GF' s Beneish M-Score Range Over the Past 10 Years
Min: -17.42   Med: -2.41   Max: -0.48
Current: -2.06

During the past 13 years, the highest Beneish M-Score of GF Securities Co was -0.48. The lowest was -17.42. And the median was -2.41.

FRA:9GF
68GF Score
GF Securities Co Ltd FRA:9GF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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GF Securities Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of GF Securities Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.0015+0.892 * 1.3216+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0596+4.679 * 0.008859-0.327 * 0.9274
=-2.14

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was €0 Mil.
Revenue was 1417.297 + 1065.126 + 1244.939 + 962.077 = €4,689 Mil.
Gross Profit was 1417.297 + 1065.126 + 1244.939 + 962.077 = €4,689 Mil.
Total Current Assets was €0 Mil.
Total Assets was €140,846 Mil.
Property, Plant and Equipment(Net PPE) was €477 Mil.
Depreciation, Depletion and Amortization(DDA) was €0 Mil.
Selling, General, & Admin. Expense(SGA) was €822 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €33,955 Mil.
Net Income was 590.813 + 335.537 + 533.976 + 448.273 = €1,909 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 2374.898 + -3149.942 + -68.479 + 1504.323 = €661 Mil.
 Total Receivables was €0 Mil.
Revenue was 884.532 + 1005.328 + 844.177 + 814.373 = €3,548 Mil.
Gross Profit was 884.532 + 1005.328 + 844.177 + 814.373 = €3,548 Mil.
Total Current Assets was €0 Mil.
Total Assets was €103,944 Mil.
Property, Plant and Equipment(Net PPE) was €509 Mil.
Depreciation, Depletion and Amortization(DDA) was €0 Mil.
Selling, General, & Admin. Expense(SGA) was €587 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €27,021 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 4689.439) / (0 / 3548.41)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(3548.41 / 3548.41) / (4689.439 / 4689.439)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 476.911) / 140846.263) / (1 - (0 + 508.687) / 103943.861)
=0.996614 / 0.995106
=1.0015

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=4689.439 / 3548.41
=1.3216

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0 / (0 + 508.687)) / (0 / (0 + 476.911))
=0 / 0
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(822.242 / 4689.439) / (587.206 / 3548.41)
=0.175339 / 0.165484
=1.0596

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((33955.059 + 0) / 140846.263) / ((27020.971 + 0) / 103943.861)
=0.241079 / 0.259957
=0.9274

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1908.599 - 0 - 660.8) / 140846.263
=0.008859

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

GF Securities Co has a M-score of -2.14 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.06 mean?
GF Securities Co (FRA:9GF) has a Beneish M-Score of -2.06 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on GF Securities Co and its competitors. According to the industry distribution chart, GF Securities Co ranks #380 out of 702 companies in the Capital Markets industry, placing it in the top 54.1%.
Is GF Securities Co's Beneish M-Score too high?
GF Securities Co's current Beneish M-Score is -2.06. Based on the distribution chart, GF Securities Co ranks #380 out of 702 companies in the Capital Markets industry, which is below the industry midpoint. Overall, GF Securities Co has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does GF Securities Co's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, GF Securities Co ranks #380 out of 702 companies for Beneish M-Score. This places GF Securities Co in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Capital Markets company?
A good Beneish M-Score depends on the Capital Markets industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on GF Securities Co and its competitors. GF Securities Co's current Beneish M-Score is -2.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GF Securities Co stock overvalued right now?
GF Securities Co (FRA:9GF) has a current Beneish M-Score of -2.06. The stock's GF Value™ is €2.02, compared to a current price of €1.85 — trading 8.4% below its estimated fair value. The current Beneish M-Score is -2.06. GF Securities Co's overall GF Score™ is 68/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For GF Securities Co (FRA:9GF), the current Beneish M-Score is -2.06 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is GF Securities Co (FRA:9GF) Overvalued in 2026?

Based on GuruFocus' analysis, GF Securities Co stock appears to be undervalued. The current stock price of €1.85 is trading 8.4% below its estimated GF Value™ of €2.02.

Key valuation signals for FRA:9GF:

  • Beneish M-Score: -2.06
  • GF Value™: €2.02 vs. price of €1.85 (8.4% below fair value)
  • GF Score™: 68/100 with 5 warning signs

No single metric tells the full story. See the FRA:9GF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

GF Securities Co Business Description

Other Exchanges 01776:Hong Kong000776:China
Address 26 Machang Road, GF Securities Tower, Tianhe District, Guangdong, Guangzhou, CHN, 510627
GF Securities Co Ltd is principally engaged in securities business, the proxy sale of securities investment funds, the provision of futures intermediary services for futures companies, securities investment fund custodian, fund raising, fund sales, asset management, project and investment management, commodity futures brokerage, financial futures brokerage and futures investment advisory, etc. It operates through the following segments: Investment banking, Wealth management, Trading & Institutions, and Investment management.
68GF Score

Get the complete analysis for FRA:9GF

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€1.85
Price
€2.02
GF Value